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SINGTEL CDI 1:1 (SGT)

The leading provider in Singapore of international and local telephone services, mobile communication services, data communications services and postal services. Also a leading integrated communications service provider in the Asia Pacific region with of

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Telecommunications providers are set to sign the formal contracts with NBN Co that detail the prices and terms for connecting with the $35.9 billion national broadband network.

Although retail service providers such as iiNet, Optus and Internode are already offering NBN services and prices to customers, this has been done through interim agreements.

In late October the wholesale broadband agreement (WBA), which is now in its fifth iteration, had caused concerns among industry players who refused earlier requests to sign it because NBN Co had not committed to a final version.

Some big telcos also complained about a lack of transparency and oversight from the Australian Competition and Consumer Commission.

But earlier this week, NBN Co released what it called a “final draft” and named November 30 as the date on which a formal contract would be released.

Internode managing director Simon Hackett said he wanted more time to review the documents and that rushing could lead to a bad outcome. He raised concerns about a newly introduced fair use policy, which is typically used by internet service providers with their customers, and claimed it lacked detail.

“It creates concerns about . . . whether there are going to be fuzzy limits on really using all the capacity we are paying for. One has the sense of a few too many cooks throwing extra vegetables into the pot ‘just in case’.”

But iiNet chief executive Michael Malone was more positive and said negotiations with NBN Co on the WBA were down to minor details, and iiNet was keen to sign the ­document as soon as possible.

“I’d say we’ll [make a decision] this week,” he said. “I think we’re really down to rats and mice issues and there’s really only been one party [Optus] that’s been raising any substantial issues in the past few weeks.

“We’ve just got to get on with selling this stuff and we’re very positive about the NBN . . . so this sort of stuff is a bit of a waste of time.”

Optus’s general manager for interconnect and economic regulation, Andrew Sheridan, said his company’s concerns were genuine but added the latest changes meant some “red” concerns were now in “amber”.

“I think it’s fair to say there have been a number of positive changes,” he said. “There are still issues that are potentially outstanding, we’re working through them and they’re not rats and mice issues.

“Two key issues to call out are the level of regulatory oversight over the NBN . . . and the other issue is service level agreements (SLAs).”

SLAs are agreements that guarantee a minimum level of service, and Mr Sheridan said NBN Co had come closer to the industry’s position.

“There’s been some movement but it’s not substantial,” Mr Sheridan said. “However, they’ve indicated further information may become available. These issues go to the long-term sustainability of the network and relationships [with telcos].”

But despite these concerns, he said the move to slash the contract duration to 12-month intervals meant telcos could temporarily accept the terms while continuing negotiations.

He added that Optus was yet to decide if it would agree. “NBN Co is seeing the November 30 document as a final one,” he said. “We’re not sure whether there’ll be any movement on some of the substantive issues.”